MAT 146 Annuity Project Assignment

Reference no: EM132388762

MAT 146 Unit 2 ANNUITY PROJECT Fall 2019

While you may not be ready to retire right now, you realize that one day you will, and the sooner you start saving for retirement, the better it will be for you when the time comes.

PART 1: Use the given formula for the Future Value of an Annuity, A, to answer the following questions:

After doing some research on retirement annuity accounts, you decide to invest in an account that pays an average yield of 4.5% compounded monthly.

1) If you begin investing money into your retirement account at the age of 25, how much do you realistically think you would be able to afford to invest per month?

2) Using the above amount as your regular monthly payment R, calculate the amount of money A, that will be in your annuity if you begin payments at the age of 25 and retire at the age of 67.

3) Using the same monthly payment amount R, calculate the amount of money that will be in your annuity if you wait to begin paying in at the age of 35 and retire at the age of 67.

4) If you were able to increase your monthly payment by $100, calculate the amount of money that will be in your annuity if you begin paying in at the age of 25 and retire at the age of 67.

5) Using your new INCREASED monthly payment amount R, calculate the amount of money that will be in your annuity if you begin paying in at the age of 35 and retire at the age of 67.

6) Based on the results of your calculations in questions 2-5, what conclusions can you make? Give a thorough answer in 3-5 complete sentences.

PART 2: When you solve the above equation for the regular monthly payment R you get:

Use the formula for R to help you answer the following questions:

1) What is your current age? What is a realistic amount that you would like to have in your annuity account when you retire?

2) If you decide to begin investing in a retirement account at your current age, how much would you need to invest each month to reach your desired amount by the age of 67?

3) If you wait 10 years before starting to invest a monthly amount, how much would you need to invest each month if you want to reach your desired amount by the age of 67?

4) If you wait 20 years before starting to invest a monthly amount, how much would you need to invest each month if you want to reach your desired amount by the age of 67?

5) Based on the results of your calculations in questions 2-4, what conclusions can you make? Give a thorough answer in 2-3 complete sentences.

Reference no: EM132388762

Questions Cloud

Information management differs from information governance : Write 3 paragraphs explaining 3 ways that records information management differs from information governance.

Identify the specific tax issues : Identify the specific tax issues relating to the four main categories. This assignment will develop your ability to apply relevant taxation principles

Develop analysis of the experience with gender socialization : Develop a 4-5 page analysis of your experience with gender socialization. In doing so, analyze how gender is created by society, specifically looking.

What are the costs and projected outcomes of the program : Tell us about a healthcare program, within your practice. What are the costs and projected outcomes of this program? Who is your target population?

MAT 146 Annuity Project Assignment : MAT 146 Unit 2 ANNUITY PROJECT Fall 2019. How much do you realistically think you would be able to afford to invest per month

Final project-disparities in healthcare : Apply all they learned during the course in order to address specific disparities existing among several countries' healthcare systems.

Define what a nurse might contribute to decisions : Consider what a nurse might contribute to decisions made at each stage of the SDLC when planning for new health information technology.

What actions would the nurse take upon the first assessment : Mrs. Adams, a 68-year-old widow who was referred to case management upon discharge from the hospital based on her physician's recommendation that she is not.

How is health care cost defined and measured : How is health care cost defined and measured? How is health care accessibility defined and measured? How is health care quality defined and measured?

User Account

All Pages